Which one of the following is not correct about variable costing systems? Select one: O a. Focuses on variable manufacturing costs only O b. Product cost does not include variable selling expenses. O c. Calculate product cost as the sum of directs materials, direct labor ar overhead costs O d. Normally result into a lower product cost compared to absorption c

Which one of the following is not correct about variable costing systems? Select one: O a. Focuses on variable manufacturing costs only O b. Product cost does not include variable selling expenses. O c. Calculate product cost as the sum of directs materials, direct labor ar overhead costs O d. Normally result into a lower product cost compared to absorption c

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4SEQ: For which cost concept used in applying (he cost-plus, approach to product pricing are fixed...

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production. Which one of the following is likely to be a cost driver? Select one: Oa. Machine hours Ob. None of the given answers Oc. depreciation. Od. Retail price O e. Monthly rent. ESET NOD32 A Your system is expos click on this notificat Wers to Ch3 Pau ScrLk NmLk PrtSc Thinklantage Bre SysRq
Which of following is not correct about normal costing? Select one: O a. Product cost includes the applied indirect manufacturing cost O b. Product cost includes the traced actual direct materials O c. Actual direct labor cost is traced to jobs d. Product cost does not include selling and administrative expenses O e. Predetermined rate is used to apply direct manufacturing costs Which one of the following is.not correct about variable costing systems?
CLEAR MY CHOICE Which of the following statements is false? O a Volume-based costing has typically resulted in undercost for high-volume products and overcost for low-volume products. O b. Different cost allocation methods are constructed so that they typically result in the same or similar estimates of how much it costs to make a product. OC Activity-based costing typically provides less information about product costs while requiring more recordkeeping. O d. All the statements are false. O e. Activity-based costs per unit are always greater than volume-based costs per unit. Windows buii PAGE dows huil Sslacyl Jail NEXT P. ENG DELL
The _________ is considered part of the cost of the product in absorption costing, but not in variable costing. Group of answer choices Variable Overhead Fixed Overhead Variable Selling & Administrative Fixed Selling and Administrative In the absorption income statement, Sales less Cost of Goods Sold is the calculation for: Group of answer choices Contribution margin Gross margin Net Income Operating Income
multiple choice 1. What is the difference between “Absorption costing”, “Variable costing” and “Throughput costing”?to. Under Variable costing, fixed manufacturing costs are NOT inventoriedb. Under Throughput costing, only direct raw material costs are inventoriedc. Both "a" and "b" are correctd. Neither "a" nor "b" are correct 2. If a manufacturing company does NOT have inventories, the difference between operating income under absorption costing and operating income under variable costing will be:to. equal to the variable overhead that the company incurred.b. equal to the fixed overhead that the company incurredc. equal to the sum of fixed overhead and incurred variable overheadd. neither, both amounts will be equal
Which one of the following is not considered an assumption of cost-volume-profit analysis? O a. Fixed cost per unit is not constant O b. Sales mix of products sold does not remain constant O c. Selling price per unit does not change with volume O d. Costs are linear O e. Costs can be divided into variable and fixed components W to search (OD hp prt sc delete home %24 & E backs pace 6 8. U E %3D 1 F enter G H. J K pause M C alt ctrl
Choose the letter of the correct answer 1. Statement 1: Product cost under Variable costing are Direct Material, Direct Material and Variable Overhead only. Statement 2: Under absorption costing, Factory Overhead is considered as indirect product cost. A. Both statements are True B. Both statements are False C. Statement 1 is true. Statement 2 is false D. Statement 1 is false. Statement 2 is true 2. Statement 1. Selling cost is treated as expenses under variable costing. Statement 2. If sales for a period exceed production, then variable costing income will be higher than absorption costing income. A. Both statements are True B. Both statements are False C. Statement 1 is true. Statement 2 is false D. Statement 1 is false. Statement 2 is true
Which of the following is a correct statement? O A. the fixed manufacturing cost is based on a per unit cost, when using Variable Costing O B. the fixed manufacturing cost is based on a per unit cost, when using Absorption Costing and a total cost, when using Variable Costing Oc the variable manufacturing cost is shown as a total cost in both Variable Costing and Absorption Costing O D. the fixed manufacturing cost is always shown as a total cost, when using Absorption Costing
Which of the following statement is false? O The only difference between absorption costing and variable costing is howthe variable MOH is treated. O A traditional income statement uses absorption costing, where both variableand fixed manufacturing costs are included when calculating the productcost. O For external financial reporting purposes, GAP requires the traditionalformat income statement. O For external financial reporting purposes, companies need to classify theircosts as product costs or period costs following GAAP.
Under which costing system non-manufacturing costs may be included in ?calculating product costs „Activity based costing system only a None of the given answers .b „Absorption costing and Variable costing systems .c Absorption costing system only .d Variable costing system only .e
Info in images (a) What is the customer margin under activity-based costing when the number of orders increases to 11? (Enter a loss as a negative amount.) Customer margin under activity-based costing [ ] (b) What is the product margin under the traditional costing system when the number of orders increases to 11? (Enter a loss as a negative amount.) Product margin under the traditional costing system [ ] (c) Which of the following statements are true? (You may select more than one answer.) check all that apply If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.unanswered If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will decrease.unanswered If a customer orders more frequently, but orders the same…
2. Consider the following statements about absorption costing and variable costing: Variable costing is consistent with contribution reporting and cost-volume-profit analysis. Absorption costing must be used for external financial reporting. A number of companies use both absorption costing and variable costing. Which of the above statements is (are) True? Group of answer choices a. I, II and III. b. II only c. I and II d. III only e. I only.